Pensioners will also be given a national concessionary fare scheme, guaranteeing them at least half-price bus fares.

But, in a bid to dispel claims the government is too anti-car, Mr Prescott also announced a "new deal for motorists" to hit cowboy wheel clampers and second hand car dealers, and improve information about roadworks and delays.

He also announced plans for a national public transport information system by the turn of the century which will give timetable information on all transport services by phone, teletext or the internet.

Declaring he wanted to ensure a "renaissance of public transport", he said "the bus must have priority on the road".

Opposition spokesman Gillian Shephard said that now the "great day" for the long-promised proposals had come what had been introduced was: "extra taxes for road users, more regulation and more bureaucracy and no improvements for the travelling public."

"If this is the best he can do after 14 months dithering in government and 18 years fulminating on it, then we might as well have been waiting until next Spring," she said.

"This white paper has been leaked, hyped and over sold. It promised action what it is promising is more taxes," she said.